[Introduced February 18, 2011; referred to the Committee on
Transportation and Infrastructure; and then to the Committee on
the Judiciary.]

____________

A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new article, designated §31-15D-1, §31-15D-2,
§31-15D-3, §31-15D-4, §31-15D-5, §31-15D-6, §31-15D-7, §31-15D-8 and §31-15D-9, all relating to alternative mechanisms to
supplement current strategies to expeditiously expand
broadband throughout the State of West Virginia.

Be it enacted by the Legislature of West Virginia:

That the Code of West Virginia, 1931, as amended, be amended
by adding thereto a new article, designated §31-15D-1, §31-15D-2,
§31-15D-3, §31-15D-4, §31-15D-5, §31-15D-6, §31-15D-7, §31-15D-8
and §31-15D-9, all to read as follows:

ARTICLE 15D. ALTERNATIVE FORM OF REGULATION OF TELECOMMUNICATIONS
SERVICES.

§31-15D-1. Declaration of policy.

It is the policy of the State of West Virginia to:

(1) Strike a balance between mandated deployment and market-driven deployment of broadband facilities and advanced services
throughout this state and to continue alternative regulation of
exchange telecommunications companies.

(2) Maintain universal telecommunications at affordable rates
while encouraging the accelerated provision of advanced services
and deployment of a universally available, state-of-the-art,
interactive broadband telecommunications network in rural, suburban
and urban areas, including deployment of broadband facilities in or
adjacent to public rights-of-way abutting public schools and
including the administrative offices supporting public schools,
industrial parks and health care facilities.

(3) Ensure that customers pay only reasonable charges for
protected services which shall be available on a nondiscriminatory
basis.

(4) Ensure that rates for protected services do not subsidize
the competitive ventures of telecommunications carriers.

(5) Provide diversity in the supply of existing future
telecommunications services and products in telecommunications
markets throughout this commonwealth by ensuring that rates, terms
and conditions for protected services are reasonable and do not
impede the development of competition.

(6) Ensure the efficient delivery of technological advances
and new services throughout this state in order to improve the
quality of life for all residents.

(7) Encourage the provision of telecommunications products and
services that enhance the quality of life of people with
disabilities.

(8) Promote and encourage the provision of competitive
services by a variety of service providers on equal terms
throughout all geographic areas of this state without jeopardizing
the provision of universal telecommunications service at affordable
rates.

(9) Encourage the competitive supply of any service in any
region where there is market demand.

(10) Encourage joint ventures between local exchange
telecommunications companies and other entities where such joint
ventures accelerate, improve or otherwise assist a local exchange
telecommunications company in implementing its network
modernization plan.

(11) Establish a bona fide retail request program to aggregate
and make advanced services available in areas where sufficient
market demand exists and to supplement existing network
modernization plans.

(12) Promote and encourage the provision of advanced services
and broadband deployment in the service territories of local
exchange telecommunications companies without jeopardizing the
provision of universal service.

(13) Recognize that the regulatory obligations imposed upon
the incumbent local exchange telecommunications companies should be
reduced to levels more consistent with those imposed upon competing
alternative service providers.

§31-15D-2. Definitions.

The following words and phraseswhen used in this article
have the meanings given to them in this section unless the context
clearly indicates otherwise:

(1) "Advanced service" is a retail telecommunicationsservice
that, regardless of transmission medium or technology, is capable
ofsupporting a minimum speed of one hundred kilobits per second
(kbps) in at least one direction at the network demarcation point
of the customer's premises.

(2) "Aggregator telephone" is atelephone which is made
available to the transient public, customers or patrons, including,but not limited to, coin telephones, credit card telephones and
telephones located in hotels, motels, hospitals and universities.

(3) "Alternative form of regulation" is a form of regulation
of telecommunications services other than the traditional rate base
or rate of return regulation, including a streamlined form of
regulation asapproved by the council.

(4) "Alternative service provider" is an entity that providestelecommunications services in competition with a local exchange
telecommunicationscompany.

(5) "Bona fideretail request" is a written request for
service which meets the requirements of section3014(c) (relating
to network modernization plans), is received by a localexchange
telecommunications company, and through which end users commit tosubscribe to an advanced service.

(6) "Bona fide retail request program" is a program
established by a local exchange telecommunications company pursuant
to those provisions of section 3014(c)relating tonetwork
modernization plans.

(7) "Broadband" is a communication channel using any
technology and having abandwidth equal to or greater than 1.544
megabits per second (mbps) in thedownstream direction and equal to
or greater than 128 kilobits per second (kbps) inthe upstream
direction.

(8) "Broadband availability" is access to broadband service by
a retail telephone customer of a local exchange telecommunications
company.

(9) "Broadband outreach andaggregation program" is a program
established by the Broadband Deployment Council of the Department
of Commerce pursuant to the provisions of section 3014(i)relating
to networkmodernization plans.

(10) "Business attraction or retention program" is a program
established by a localexchange telecommunications company pursuant
to section 3014(d) relating tonetwork modernization plans.

(11) "Central office" is a local exchange telecommunications
company switchused to provide local exchange telecommunications
service.

(12) "Community" is those customers of a localexchange
telecommunications company served by an existing or planned remoteterminal or, where no remote terminal exists or is planned, a
central office switch.

(13) "Competitiveservice" is a service or business activity
determined to be competitive by thecouncil on or prior to December
31, 2003, and a service or business activitydetermined or declared
to be competitive pursuant to section 3016 relating tocompetitive
services.

(14) "Department" is the Department of Commerce of this state.

(15) “Council” is the Broadband Deployment Council under the
Department of Commerce.

(16) "Education Technology Fund" or "e-fund" is the fund
established under section 3015(d) relating toalternative forms of
regulation.

(17) "Education technology program" is the program established
by thedepartment of education pursuant to section 3014(j) relating
to network modernizationplans.

(18) "Eligible telecommunications carrier" is a carrier
designated by the West Virginia Public Utility Council pursuant to
47 CFR 54.1 or successor regulation aseligible to receive support
from the Federal Universal Service Fund.

(19) "Eligible telecommunications customer" is a customer of
an eligible telecommunications carrier who qualifies for lifeline
service discounts pursuant to the requirements of 47CFR 54.409 or
successor regulation.

(20) "Fund" is the Broadband Outreachand Aggregation Fund
established under section 3015(c)relating toalternative forms of
regulation.

(21) "Gross domestic product price index" or "gdp-pi" is the
gross domesticproduct fixed weight price index as calculated by
the United States Departmentof Commerce or a successor price
index.

(22) "Inflation offset" is the part ofthe price change
formula in the price stability mechanism that reflects an offsetto
the gross domestic product price index or successor price index.

(24) "Interexchange telecommunications carrier" is a carrier
other than a local exchange telecommunications company authorized
by the Council to provide interexchange services.

(25) "Lifeline service" is a discounted rate local service
offering, as defined in 47CFR 54.401 or successor regulation, but
excludingany offering funded in part by federal universal service
funding under 47CFR 54.403 or successor regulation.

(26) "Local development district" is a multicounty economic
and community development organization established to provide
regional planning and developmentservices to improve the economy
and quality of life in a particular regionthrough a variety of
activities, including, but not limited to, the fostering ofpublic
and private partnerships and providing assistance to businesses.

(27) "Local exchangetelecommunications company" is an
incumbent carrier authorized by the council to provide local
exchange telecommunications services. The term includes a rural
telecommunications carrier and a nonrural telecommunications
carrier.

(28) "Local exchange telecommunications service" is the
transmission of messages or communications that originate and
terminate within a prescribed local calling area.

(29) "Network modernization plan" is aplan for the deployment
of broadband service by a local exchange telecommunications company
under this chapter or any prior law of this state.

(30) "Noncompetitive service" is aregulated
telecommunications service or business activity that has not beendetermined or declared to be competitive.

(31) "Nonprotected service" is any telecommunications service
provided by a local exchange telecommunications company that is not
a protected service.

(32) "Nonrural telecommunications carrier" is a local exchange
telecommunications companythat is not a rural telephone company as
defined in section 3 of the Telecommunications Act of 1996.

(33) "Optional calling plan" is a discounted toll plan offered
by either a local exchangetelecommunications company or an
interexchange telecommunications carrier.

(34) "Politicalsubdivision" is any county, city, borough,
incorporated town, township, municipality,municipal authority or
county institution district.

(35) "Price stability mechanism" is a formula whichmay be
included in a council-approved alternative form of regulation planthat permits rates for noncompetitive services to be adjusted
upward ordownward.

(36) "Protectedservice" is the following telecommunications
services provided by a local exchange telecommunications company,
unless the council has determined theservice to be competitive:

(A) Service provided to residential consumers or business
consumers that isnecessary to complete a local exchange call.

(B) Touch-tone service.

(C) Switched access service.

(D) Special access service.

(E) Ordering, installation,restoration and disconnection of
these services.

(37) "Remote terminal" is a structure located outsideof a
central office which houses electronic equipment and which providestransport for telecommunications services to and from a central
office.

(38) "Rural telecommunicationscarrier" is a local exchange
telecommunications company that is a rural telephone company asdefined in section three of the Telecommunications Act of 1996.

(39) "School entity" is an intermediate unit, school district,
joint school district, area vocational-technical school,
independent school, licensed privateacademic school, accredited
school and any other public or nonpublic schoolserving students in
any grade from kindergarten through twelfth grade.

(40) "Special access service" is service provided over
dedicated, nonswitched facilities by local exchangetelecommunications companies to interexchange telecommunications
carriers or other largevolume users which provides connection
between an interexchangetelecommunications carrier or private
network and a customer's premises.

(41) "Switched access service" is aservice which provides for
the use of common terminating, switching and trunkingfacilities of
a local exchange telecommunications company's public switched
network. The term includes, but is not limited to, the rates for
local switching, common and dedicated transport and the carrier
charge.

(42) "Telecommunications Act of 1996" is theTelecommunications Act of 1996.

(43) "Telecommunications carrier" is an entity that provides
telecommunicationsservices subject to the jurisdiction of the
council.

(44) "Telecommunications service" is the offering of the
transmission of messages or communications for a fee to thepublic.

(45) "Universalbroadband availability" is access to broadband
service by each telephone customer of a local exchange
telecommunications company.

§31-15D-3. Continuation of approved alternative modernization
plans.

(a) General Rule. Analternative form of regulation plan and
network modernization plan approved by the Department of Commerce,
the Public Service Commission or the Broadband Council prior to the
effective date of this article for a local exchange
telecommunications company remains valid and effective except as
may be amended at the election of thelocal exchange
telecommunications company as authorized by law. The council shall
allow a previously approved plan to be amended toconform to any
changes made under this article and shall not require any otherchanges to the plan.

(b) Limitation on changes to plans. Except for changes to
existing alternative form ofregulation and network modernization
plans as authorized by this chapter, no change to any alternative
form of regulation or network modernization plan may be madewithout the express agreement of both the council and the local
exchange telecommunications company.

(c) Grandfather provision. All services determined to be
competitive prior to the effective date of this amendment remain
competitive services unless reclassified by the council under
section 3016(c).

(d) Council Oversight. The council will continue to exercise
oversight of alternative form of regulation and network
modernization plans for local exchange telecommunicationscompanies
as provided in this chapter.

§31-15D-4. Network modernization plans.

(a) Continuation of approved plan. A local exchange
telecommunications company that does not elect an option under
subsection (b) remains subject to its networkmodernization plan in
effect prior to the effective date of this article without revision
or modificationexcept by agreement under section 3013(b)and as
provided in this section through December 31, 2115.

(b) Options for amendment ofnetwork modernization plan. Local
exchange telecommunications companies shall have the following
options:

(1)(A) A rural telecommunications carrier that elects to amend
its network modernization plan pursuant to this subsection shall
remain subject tothe carrier's network modernization plan
previously in effect, and as amended under this section, until
December 31, 2117. Prior toimplementation of such election, the
rural telecommunications carrier shall comply with the notification
requirements of subsection (e).

(B) The rural telecommunications carrier shall commit to
accelerate one hundred percent broadband availability by December
31, 2112, in its amended network modernization plan. Any rural
telecommunicationscarrier electing this option shall not be
required to offer a bona fide retail request program or a business
attraction or retention program.

(2) (A) A rural telecommunications carrier that elects to
amend its network modernization plan pursuant to this section shall
remain subject to the carrier's current network modernization plan,
as amended pursuant to this section, through December 31, 2112, or
December 31, 2117, as applicable. Prior to implementation ofsuch
election, the rural telecommunications carrier shall comply with
the notification requirements of subsection (e).

(B) The rural telecommunications carrier shallcommit:

(i) Toaccelerate broadband availability to at least eighty
percent of its total retail access lines in its distribution
network by December 31, 2011, and one hundred percent of its total
retailaccess lines in its distribution network by December 31,
2012; or

(ii) To accelerate broadband availability to at least eighty
percent of its total retail access lines in its distribution
network by December 31,2012, and one hundred percent of its total
retailaccess lines in its distribution network by December 31,
2015; and

(iii) To offer a bona fide retail request program and a
business attraction or retention program pursuant tosubsections(c)
and (d). Under no circumstances may the rural telecommunications
carrier reduce its existing broadband availability commitment.

(3) (A) A nonrural telecommunications carrier that elects to
amend its network modernization plan pursuant tothis section shall
remain subject to such carrier's network modernizationplan
currently in effect, as amended pursuant to this section, including
meeting its one hundred percent broadband availability commitment.
Prior to implementation of such election, the nonrural
telecommunications carrier shall comply with the notification
requirements of subsection (e).

(B) The nonruraltelecommunications carrier shall commit:

(i) To provide broadband availability to one hundred percent
of its total retail access linesin its distribution network by
December 31, 2115, or December 31, 2117; and

(ii) To offer abona fide retail request program and a
business attraction or retention programpursuant to subsections
(c) and (d). Under no circumstances may such nonrural
telecommunications carriers reduce its existing broadband
availability commitment. (4) A local exchange telecommunications company that elects
under paragraph(1), (2) or (3) shall also commit to universal
broadband deployment in or adjacent topublic rights-of-way
abutting all public schools including the administrationoffices
supporting public schools, industrial parks and health care
facilitiesin its service territory on or before December 31, 2012,
except that a local exchange telecommunications company serving
more than ten exchanges in this state may elect to extend this
commitment from December 31, 2012, to December 31, 2013, for any
exchange with less than four thousand access lines.

(5) A local exchange telecommunications company that elects
under paragraph (1),(2) or (3) may amend itsnetwork modernization
plan to extend the period of time within which broadband service
must be made available to a customer for up to ten business days
afterthe customer's request for broadband service.

(6) A local exchange telecommunications company operating
under an amended network modernization plan may subsequently
petition the council for approval of further modification of its
amended network modernization plan which the council may grant upon
good cause shown.

(7) A rural telecommunications carrier serving less than fifty
thousand access lines in this state making an election pursuant to
paragraph (1) and filing its amended network modernization plan
with the council pursuant to subsection (e) shall be granted by the
council a suspension of section 251(c)(2),(3),(4),(5) and (6)
obligations under the Telecommunications Act of 1996. Thissuspension of obligations expires December 31, 2016, unless
extended by thecouncil. Should the council, following a hearing,
determine that the rural telecommunications carrier has failed to
timely meet its commitmentspursuant to this paragraph, the
suspension of obligations expires upon entry ofthe council order
making such determination. Expiration of the suspension of
obligations shall not impact the rural telephone company’s
exemption of the rural telecommunications carrier under section
251(f)(1) of the Telecommunications Act of 1996.

(8) A local exchange telecommunications company may accelerate
its broadband availabilitycommitment by electing an additional
option pursuant to paragraph (1), (2) or (3),as applicable, at a
later date. The local exchange telecommunicationscompany shall be
subject to the applicable modified inflation offset in its pricestability mechanism as set forth in section 3015(a)(1), relating to
alternativeforms of regulation, effective upon the filing of an
amended networkmodernization plan under subsection (e). (c) Bona Fide Retail Request Program. A local exchange
telecommunicationscompany that elects to amend its network
modernization plan pursuant tosubsection (b)(2) or (3) shall, no
later than ninety days after the effective date ofits amended
plan, implement a Bona Fide Retail Request Program in areas whereit does not provide broadband. Not later than thirty days in
advance of program implementation, the local exchange
telecommunications company shall filewith the council and provide
it with a written description ofthe program, a sample request for
advanced services form for use in theprogram and the form of any
advanced services term subscription agreements customerswill be
required to execute in connection with receiving the requested
services. A Bona Fide Retail Request Program shall consist of the
following:

(1) Any person, business, localdevelopment district,
industrial development agency or other entity seeking advancedservices pursuant to a Bona Fide Retail Request Program shall
submit awritten request for such services to the local exchange
telecommunicationscompany or to the department in accordance with
subsection (d). The written requestmay be in the form of a
petition which includes the information required byparagraph (2)
or in the form provided by the council under subsection (d) whichincludes the information required by paragraph (2) or in the form
of individualrequests each of which includes the information
required by paragraph (2). If individual requests are received, the
local exchange telecommunications company shall aggregate requests
for the same service and initiate appropriate actionpursuant to
this subsection when the required number of requests have beenreceived.

(2) To be considered a bona fide retail request, the written
request must include:

(A) A request that a minimum of fifty retail access lines or
twenty-five percent of retail access lines within a community,whichever is less, each be provided the same advanced service or
comparable advancedservices having a bandwidth within one hundred
kilobits per second (kbps) of each other. Notwithstanding the
foregoing comparable bandwidth limitation, where a request includes
individual customer requests for advanced services having equal to
or less than 1.544 megabits per second (mbps) bandwidth in the
downstream direction, all lines in the request shall be counted in
meeting theminimum line requirement of this subparagraph;

(B) The name, address, telephone number and signature of each
existing retail customer requesting the advanced service, theadvanced service being requested and the number of access lines for
which theadvanced service is being requested;

(C) The name, address and telephone number of a designated
contact person where the request is made by or on behalf of more
than one person or business; and

(D) Acommitment by each customer who signs the request to
subscribe to the requestedservice for one year subject to the
local exchange telecommunications company's identification of the
price and terms of the service and the customer's agreement to the
price and terms.

(3) In administering the Bona Fide Retail Request Program, the
local exchange telecommunications company shall:

(C) Confirm its receipt of any completed request in writing to
the customer and identify the service requested;

(D) As part of the written confirmation, ifavailable or in a
subsequent written communication to the customer, provide thecustomer the applicable rate, the contract term, the status of the
request and aterm subscription agreement for execution; and

(E) Notify the customers in a community within thirty days of
receipt of a bona fide request of the expected date of theavailability of the requesters' service.

(4) When a bona fide retail request has been received that
meets the requirements of paragraph (2), the local exchange
telecommunicationscompany shall provide the requested advanced
service or other reasonablycomparable service having a bandwidth
within 100 kilobits per second (kbps) of the requested service, to
the community as soon as practicable, but in no event later than
three hundred sixty-five days of the date the requirements of
paragraph (2) havebeen met or within the period approved by the
council under paragraph (5) or (6) where:

(A) Thelocal exchange telecommunications company provides the
requested advancedservice to other customers in its service
territory;

(B) No service is available to the requestingcustomers from
an alternative service provider at or within one hundred kilobits
persecond (kbps) of the data speed requested or such service is
available at a price thatexceeds the then current price offered by
the local exchange telecommunicationscompany by more than fifty
percent;

(C) The community is situated within the service territory of
the local exchangetelecommunications company; and

(D) The local exchange telecommunications company does not
have to provide fiber to the customer's premises to furnish therequested advanced service.

(5) Where, as a result of property acquisition, including
acquiring rights-of-way or new construction, a local exchange
telecommunications company isunable to provide the requested
advanced service within the one-year period setforth in paragraph
(4), the company may petition the council for an extensionof up to
six months with service upon the customer or customers who made thebona fide retail request and the department if the department
submitted therequest on behalf of the customer or customers. The
council shall grant the petition for good cause shown. (6) Where the total number of bona fide retailrequests
received by any local exchange telecommunications company or
affiliated companies that meet the requirements of paragraphs (2)
and (4) exceed forty requests in any twelve-month period, or where
there are more than such requests that require property
acquisition, including acquiring rights-of-way, or newconstruction
in any twelve-month period, the local exchangetelecommunications
company or companies may provide a verified certification to thecouncil that one or both of the previously stated criteria are met,
with service uponthe customer or customers who made the additional
requests and upon thedepartment if the department submitted any
such requests. Upon receipt of the certification, the council, or
the council through its designatedstaff, shall permit the local
exchange telecommunications company or companiesto extend the time
for such deployments for a period of no more than twelve months
unless the council determines an additional time period to be justand reasonable. If a deployment is extended, it shall be counted indetermining the maximum number of deployments provided for under
this subsection in any twelve-month period covering the month to
which it is extended.

(7) No advanced service requested and deployedby a local
exchange telecommunications company under the bona fide retail
requestprogram which has a bandwidth of less than 1.544 megabits
per second (mbps) inthe downstream direction shall be counted as
a credit toward the localexchange telecommunications company's
broadband deployment obligation under itsnetwork modernization
plan amended pursuant to subsection (b)(2) or (3).

(8) With regardto requests submitted under this subsection,
a retail customer may challenge theaction of a local exchange
telecommunications company pursuant to section 701 relating to
complaints.

(9) Local exchange telecommunications companies with bona fide
retail requestprograms shall provide semiannual reports to the
council ofthe number of requests for advanced services received
during the reportingperiod by exchange or density cell and the
action taken on requests meeting the requirements of this
subsection.

(10) A local exchange telecommunicationcompany's Bona Fide
Retail Request Program established under this subsection shallcontinue through December 31, 2023, or such earlier date as the
local exchange telecommunications company achieves one hundred
percent broadband availabilitythroughout its service territory.

(11) In addition to adjudicating any complaints brought by
customers underparagraph (8), the council shall monitor and
enforce the compliance of participating local exchange
telecommunications companies with their obligations underthis
subsection.

(d) Business attraction or retention program.

(1) Not later than ninety days after amending its network
modernization plan under subsection (b)(2) or (3), the localexchange telecommunications company shall establish a business
attraction orretention program to permit the department to
aggregate customer demand wherenecessary and facilitate the
deployment of advanced or broadband services toqualifying
businesses which the council seeks to attract to or retain in this
state.

(2) Each local exchange telecommunications company which
amends its networkmodernization plan under subsection (b)(2) or
(3) not later than ninety days after theeffective date of its
amended plan shall designate a single point of contact toreceive
all written advanced or broadband service requests forwarded by thedepartment, provide associated contact information to the
department and provide thedepartment and the council with a
written description of itsparticipation in the program and a
sample request for advanced or broadband services formfor use in
the program.

(3) The council may submit a request to the applicable local
exchange telecommunications company by or on behalf of qualifying
businesses inareas that the council deems priority areas for
economic development,including and giving preference to keystone
opportunity zones, keystone opportunityexpansion zones, enterprise
zones, keystone opportunity improvement zones andother areas
identified as lacking adequate access to advanced orbroadband
services which would be important in order to promote economicdevelopment projects in those areas.

(4) The council shall establish an advisory committeeconsisting of representatives of each local exchange
telecommunications company with abusiness attraction or retention
program, local development districtsand other local economic and
industrial development agencies to assist the council in developing
protocols and procedures for implementing these programspursuant
to this subsection.

(5) Qualifying business or businesses' requests for advanced
services that are provisioned through the bona fide retail requestprogram shall be processed in accordance with subsection (c) and
shall beallocated fifty percent of the maximum number of annual
deployments referenced in subsection (c)(6). Other requests shall
be allocated fifty percent of the number of such deployments:Provided, that any allocated deployments that are unused may beutilized by the department or nondepartment applicants, as
applicable.

(6) Forqualifying business or businesses whose request for
advanced services is determined by thelocal exchange
telecommunications company to be better processed outside ofthe
Bona Fide Retail Request Program, the local exchange
telecommunicationscompany shall make a proposal to the requesting
business or businesses to provide the requested advanced or
broadband service and subsequently shallprovision such service.
The local exchange telecommunications company shall advise the
council and the business or businesses within thirty days of the
date thecontract is signed of the date by which the requested
advanced orbroadband service will be provided, which date shall be
not later than one yearafter the date the contract is signed,
unless the business or businesses agree toa longer period, or the
local exchange telecommunications company obtainscouncil approval
of an extension under the same procedure set forth insubsection
(c)(5).

(7) Noadvanced service requested of and deployed by a local
exchange telecommunicationscompany under the business attraction
or retention program which has a bandwidthof less than 1.544
megabits per second (mbps) in the downstream direction shallbe
counted as a credit toward the local exchange telecommunicationcompany's broadband deployment obligation under its network
modernization planamended under subsection (b)(2) or (3).

(8) Each local exchange telecommunicationscompany which is
required to participate in the council’s business attraction orretention program shall continue its participation through December
31, 2023, orsuch earlier date as it achieves one hundred percent
broadband availability throughout itsservice territory.

(9) The council shall oversee local exchange
telecommunications companyparticipation in the business attraction
or retention program, including the timelycompletion of qualifying
advanced or broadband services requests submitted, which are
processed within or outside of theparticipating local exchange
telecommunications companies' bona fide retail requestprograms.

(10) Thecouncil shall monitor and enforce the compliance of
participating local exchange telecommunications companies with
their obligations under the business attraction or retention
program.

(e) Notice of filing of amendments. A localexchange
telecommunications company that elects to amend its networkmodernization plan under subsection (b) shall notify the council in
writing of suchelection and, within sixty days following such
notification, file its amendednetwork modernization plan with the
council. Copies of the written notice ofelection and of the
amended network modernization plan shall be served by thelocal
exchange telecommunications company on the office of consumer
advocateand the office of small business advocate. Concurrent with
the filing of theamended plan with the council, the local exchange
telecommunications companyshall publish notice of such filing in
a newspaper or newspapers of general circulation in its service
territory or by bill message or insert. Anamended plan compliant
with the requirements of this chapter shall be approvedby the
council within one hundred days of its filing. If the council fails
to actwithin one hundred days, the amended plan is deemed
approved.

(f) Network modernization planreport.

(1) A local exchange telecommunications company operating
under a network modernization plan shall continue to file with the
council biennialreports on its provision of broadband availability
in the form and detailrequired by the council, unless such
reporting requirementsare subsequently reduced by the council.

(2) Nothing in this subsection impedes the ability of the
council to require the submission of further information to support
the accuracy of or to seek an explanation of thereports specified
in this subsection.

(3) Under no circumstances shall the councilcompel the public
release of maps or other information describing the actuallocation
of a local exchange telecommunications company's facilities.(g) Assistance to politicalsubdivisions. A local exchange
telecommunications company shall commit, in its amendednetwork
modernization plan, to make technical assistance available to
political subdivisions located in its service territory in pursuing
the deploymentof additional telecommunications infrastructure or
services by the localexchange telecommunications company.

(h) Prohibition against political subdivision advanced and
broadbandservices deployment.

(1) Except as otherwise provided for under paragraph (2),a
political subdivision or any entity established by a political
subdivision may not provide to the public for compensation any
telecommunicationsservices, including advanced and broadband
services, within the service territoryof a local exchange
telecommunications company operating under a network modernization
plan.

(2) A political subdivision may offer advanced or broadband
services if thepolitical subdivision has submitted a written
request for the deployment of suchservice to the local exchange
telecommunications company serving the area and,within two months
of receipt of the request, the local exchangetelecommunications
company or one of its affiliates has not agreed to provide the dataspeeds requested. If the local exchange telecommunications company
or one ofits affiliates agrees to provide the data speeds
requested, then it must do so within fourteen months of receipt of
the request.

(3) The prohibition in paragraph (1) shall notbe construed to
preclude the continued provision or offering oftelecommunications
services by a political subdivision of the same type and scope as
werebeing provided on the effective date of this section.

(i) Broadband outreach and aggregationprogram.

(1) The council shall establish a broadband outreach and
aggregation programfor the purpose of making expenditures and
providing grants from the broadbandoutreach and aggregation fund
established under section 3015(c), relating toalternative forms of
regulation, for:

(A) Outreach programs for political subdivisions, economic
developmententities, schools, health care facilities, businesses
and residential customers concerning the benefits, use and
procurement of broadband services; and

(B) Seed grants to aggregate customer demand for broadband
services in communities or political subdivisionswith limited
access to such services and to permit customers in suchcommunities
or political subdivisions to request such services from a
telecommunications provider.(2) The council shall annually report to the department on all
payments toand expenditures from the broadband outreach and
aggregation fund and thecouncil shall verify the accuracy of the
contributions from the participating local exchange
telecommunications companies.

(j) Education technology program.

(1) The department of education shall establish an education
technology program for thepurpose of providing grants to school
entities from the Education Technology Fund, also referred to as
the “e-fund”, established in section five, article 15-d, chapter
thirty-one.

(2) The department of education shall authorizegrants from
the e-fund for the following purposes: (A) Purchase or lease of telecommunicationsservices,
infrastructure or facilities to establish and support broadband
networksbetween, among and within school entities and not for the
provision of telecommunications services to the public for
compensation.

(B) Purchase or lease ofpremises telecommunications network
equipment and end-user equipment to enablethe effective use of
broadband networks between, among and within schoolentities and
not for the provision of telecommunications services to the publicfor compensation.

(C) Distance learning initiatives that use the foregoing
broadband networks. (D) Technicalsupport services for the activities described in
subparagraphs (i) through (iii).

(3) Eachapplicant school entity shall be required to provide
one hundred percent matching funds to support eache-fund grant
request. Funds received from federal technology programs such asthe universal service support mechanism for schools and libraries
set forthin 47 CFR pt. 54, relating to universal service or
successor regulations, in-kind contributions and any other
technology expenditures shall be appliedtoward the matching fund
requirement.

(4) No later than ninety days after the effective date of this
section, the department of education shall prescribe the grant
process and the formand manner of the e-fund application. Grants
shall be limited to the fundsavailable in the education technology
fund. In awarding grants, the department of education shall give
priority to applications:

(A) That are submitted by school entities thatseek funds for
discounted broadband services under subsection (l) or for broadband
infrastructure, facilities or equipment from local exchangetelecommunications companies which contribute to the e-fund;

(B) That seek funds for regional networks thatserve multiple
school districts which are filed on behalf of multiple schooldistricts and school entities; or (C) That are submitted by school entities that do not have
broadband service: Provided,That nothing in this subsection shall
preclude thedepartment from awarding funds to school entities for
telecommunications services, infrastructure or facilities that
provide bandwidths greater than 1.544megabits per second. The
department of education shall assure that the applications funded
each year are geographically dispersed throughout the state.

(k) Balanced deployment.A local exchange telecommunications
company shall reasonably balance deployment of itsbroadband
network between rural, urban and suburban areas within its serviceterritory, as those areas are applicable, in accordance with its
approved network modernization plan.

(l) Broadband discounts to schools. Each local exchange
telecommunicationscompany that elects to amend its network
modernization plan pursuant to thissection:

(1) Shall offerschool customers which meet the eligibility
standards described in 47 CFR54.501 and which agree to enter into
a minimum three-year contract, a thirty percent discount, or
greater discount at the local exchange telecommunications company'sdiscretion, in the otherwise applicable tariffed distance sensitive
per-mile rate element and also will waive the associated
nonrecurring charges for availableintrastate broadband services
where used for educational purposes and not for theprovision of
telecommunications services to the public for compensation. The
discount or waiver shall notbe required where application of it to
a particular service would conflict withapplicable law.

(2) Willassist school customers in applying for e-rate
funding under 47 CFR 54.505.

(m) Inventory of available services.

(1) The council shall compile, periodically update and
publish, including at its Internet website, a listing of advancedand broadband services, by general location, available from all
advanced andbroadband service providers operating in this
commonwealth irrespectiveof the technology used.

(2) All providers of advanced and broadband services shall
cooperate with the council.

(3) The council may not disclose maps or other information
describing the specific location of any telecommunications
carrier's or alternative serviceprovider's facilities.

(n) Construction. Nothing in this section shall be construed:

(1) As giving the council theauthority to require a local
exchange telecommunications company to providespecific services or
to deploy a specific technology to retail customers seeking
broadband or advanced services. (2) As prohibiting a local exchangetelecommunications company
from participating in joint ventures with other entities inmeeting
its advanced services and broadband deployment commitments under
its networkmodernization plan.

§31-15D-5. Alternative forms of regulation.

(a) Inflation offset.

(1) Except as otherwiseprovided in paragraphs (2) and (3), a
local exchange telecommunications companywith an alternative form
of regulation containing a price stability mechanismthat files an
amended network modernization plan under section 3014(b)(1), (2) or(3) relating to network modernization plans shall be subject to a
modifiedinflation offset in its price stability mechanism in
adjusting its ratesfor noncompetitive services, effective upon the
filing of an amended networkmodernization plan under section
3014(e), as follows:

(A) If a nonruraltelecommunications carrier files an amended
network modernization plan under section 3014(b)(3) that commits to
deploy one hundred percent broadband availability by December 31,
2021, then the carrier's inflation offset shall be zero.

(B) If a nonrural telecommunications carrierfiles an amended
network modernization plan under section 3014(b)(3) that commitsto
deploy one hundred percent broadband availability by December 31,
2023, then thecarrier's inflation offset shall be equal to one-half percent.

(C) If a rural telecommunications carrierfiles an amended
network modernization plan under section 3014(b)(1) that commitsto
deploy one hundred percent broadband availability by December 31,
2024, or undersection 3014(b)(2)(ii)(a), that commits to deploy
one hundred percent broadband availability by December 31, 2029,
then the carrier's inflation offset shall be zero.

(2) Utilizing network modernization planreports filed with
the council by local exchange telecommunications companies undersection 3014(f), the council shall monitor and enforce companies'
compliancewith their interim and final one hundred percent
commitments for broadband availability intheir amended network
modernization plans. In the event that a local exchange
telecommunications company is found by the council, after notice
and evidentiary hearings held on an expedited basis, to have failed
to meetsuch an interim or final one hundred percent commitment,
then the council shall require thelocal exchange
telecommunications company to refund to customers in its nextprice
stability filing an amount that is just and reasonable under thecircumstances. Such amount shall not exceed an amount determined by
multiplying the percentage shortfall ofthe broadband availability
commitment on an access line basis required to bemet during the
period from the start of the amended plan or from the date ofthe
last prior interim commitment, as applicable, times the increasedrevenue that was obtained during this period as a result of the
modified inflationoffset provided in this section that reduced the
inflation offset applicable inthe local exchange
telecommunications company's alternative regulation planin effect
on the effective date of this section, plus interest calculatedunder section 1308(d) relating to voluntary changes in rates. Any
suchrefund required under this subsection shall be separate from
and in addition toany civil or other penalties that the may be
imposed on a localexchange telecommunications company. (3)
Where annual rate adjustments made under anonrural
telecommunications carrier's price stability mechanism are
calculated using revenues from protected services, an average rate
adjustment for protected residential customer local exchange
telecommunications service lines shall be determined by dividing
the total protected service revenues associated with such lines, as
adjusted by the price stability formula, by the number of suchlines and the rate adjustment for any individual line shall not
vary from thisaverage rate adjustment by more than twenty percent.

(b) Rate changes for rural telecommunicationscarriers.

(1) In addition to the rate change provisions in its
alternative form ofregulation plan, a rural telecommunications
carrier operating without aprice stability mechanism that files
with the council an amended network modernization plan under
section 3014(b)(1) or (2) shall be permitted atany time to file
proposed tariff changes with the council, effective forty-fivedays
after filing, setting forth miscellaneous changes, including
increasesand decreases, in rates for noncompetitive services,
excluding basicresidential and business rates, provided such rate
changes do not increase the rural telecommunications carrier's
annual intrastate revenues by more than three percent.

(2) The council tariff filing requirements and review
associated with such proposed ratechanges shall be limited to
schedules submitted by the rural telecommunicationscarrier
detailing the impact of the rate changes on the carrier's annualintrastate revenues.

(3) A rural telecommunications carrier that implements
noncompetitive rate changes consistent with the procedure set forth
in its alternative form ofregulation plan shall be required only
to file such financial and cost data withthe council to justify
such changes as is required under itscouncil-approved alternative
form of regulation plan.

(4) Notwithstanding the provisions of paragraph(1), (2) or
(3), for any rural telecommunications carrier serving less than
fifty-thousand access lines in this state and operating under an
alternative form ofregulation plan, a formal complaint to deny
rate changes for noncompetitiveservices, unless signed by at least
twenty customers of the rural telecommunicationscarrier, shall not
prevent implementation of the rate changes pending theadjudication
of the formal complaint by the council.

(c) Broadband outreach and aggregation fund.--

(1) There is hereby established within the State Treasury a
special fund to beknown as the Broadband Outreach and Aggregation
Fund for the purposes enumeratedin section 3014(i).

(2) A local exchange telecommunications company that files an
amended network modernization plan under section 3014(b)(2) or (3)
shall be assessed bythe council for contribution to the fund and
to the e-fund establishedunder subsection (d) an amount of twenty
percent of the first year's annual revenueeffect:(A) Of any rate increase permitted by the elimination or
reduction of the offset under subsection(A) and placed into
effect; or

(B) Of any rate increase placed into effect under subsection
(b)(1) if thelocal exchange telecommunications company is
operating without a price stability mechanism.

Forpurposes of this paragraph, the term "first year's annual
revenue effect" means the projected or actual increased revenues
received by the local exchange telecommunications company during
the one-year period from the effectivedate of its rate increase.
The council shall begin the assessments providedfor in this
paragraph on June 30, 2113, and thereafter shall make suchassessments annually on June 30 until June 30, 2018, for
assessments that includeamounts for the fund and the e-fund and
until June 30, 2023, for assessmentsthat include amounts for only
the fund. Each assessment shall be based on thefirst year's annual
revenue effect of any covered rate increase effectiveafter the
date of the last annual assessment.

(3) An amount not to exceed fifty percent of suchassessment
shall be allocated to the fund. The remainder of the assessment
shall beallocated to the e-fund provided for under subsection (d)
until its termination on June 30, 2019. After the e-fund
termination, the maximum assessment percentageshall be reduced
from twenty percent to ten percent and contributions shall be made
only to thefund until the local exchange telecommunications
company achieves one hundred percent broadband availability.
Contributions of allocated amounts shall be paid to thefund and
the e-fund by the local exchange telecommunications company in
equal quarterly installments. (4) In no event shall the total amount of the fund exceed $5
million annually and, in the event of such over-funding, the
council shall credit the over-collection to the next year's
contribution amount.

(5) A local exchange telecommunications companythat elects to
amend its network modernization plan pursuant to section 3014(B)(1) shall not be required to contribute to the fund.

(6) The moneys in the Broadband Outreach andAggregation Fund
are hereby appropriated, upon approval of the Governor, to thedepartment for the purposes enumerated in paragraph (1). The
council may use up to three percent of the money in the fund for
administration.

(7) The fund shall continue until July 1, 2024,at which time
the fund shall terminate and the council shall return any fundsremaining in the fund, on a pro rata basis, to the local exchange
telecommunications companies that contributed to the fund.

(d) Education Technology Fund.

(1) There is hereby established within the State Treasury a
special fundto be known as the Education Technology Fund, also
known as “e-fund” for the purposesenumerated in paragraph (4).

(2) All e-fund assessments imposed by the council under
subsection (c)(2) and paragraph (3), moneys specifically
appropriated by the general assembly for the purposes of this
subsection and any funds, contributions or payments which may be
made available to the fund by the federal government, another state
agency or any public or private source for the purpose of
implementing thissubsection, shall be deposited in the e-fund.

(3) Beginning in 2013 and continuing through 2018, the council
shall, no later than June 30 of each year, assess each nonrural
telecommunications carrier that files an amended network
modernization plan under section 3014(b)(3), an amount to be
deposited in the e-fund. Each carrier's annual assessment shall be
payable in two equal installments due on October 31,of each year,
and January 31 of the following year and shallbe based on the
relative proportion of the retail access lines served bythe
nonrural telecommunications carrier in relation to the number of
retail access lines served by all nonrural telecommunications
carriers that have filed an amended network modernization plan
under section 3014(b)(3). For fiscal years 2013-2014 and 2014-2015, the total annual assessment amount shall be $7 million. For
fiscal years 2015-2016, 2016-2017, 2017-2018 and 2018-2019, the
total annual assessment amount shall be the difference between $7
million and any amount remaining in the e-fund from prior fiscal
years which remains unencumbered or unexpended. A nonrural
telecommunications carrier's assessments required under this
paragraph may not be recovered via a surcharge on customers' bills
or in rates for noncompetitive services as exogenous changeadjustment under the provisions of the carrier's price stability
mechanism andsubsection (a)(3) where applicable.

(4) Additional local exchange telecommunications company
contributionsto the e-fund shall be made pursuant to the
provisions of subsections (c)(2)and (3).

(5) The department of education shall expend the moneys of the
e-fund for the purpose ofproviding grants to school entities as
prescribed by section 3014(j).

(6) The moneys of the EducationTechnology Fund are hereby
appropriated, upon approval of the Governor, to the department of
education for the purposes enumerated in paragraph (5). Thedepartment of education may use up to three percent of the money
for administration. Appropriations by the general assembly to the
fund shall be continuing appropriations andshall not lapse at the
close of any fiscal year.

(7) The e-fund shall continue until June 30, 2019, at which
time the fund shall terminate and the department of educationshall
return any funds remaining therein, on a pro rata basis, to the
local exchange telecommunications companies that contributed to the
fund.

(e) General filing requirements. The council's filing and
audit requirements for a local exchange telecommunications company
that is operating under an amended network modernization plan shall
be limited to the following:

(7) An annual statement of gross intrastateoperating revenues
for purposes of calculating assessments for regulatoryexpenses.

(8) An annualstate tax adjustment computation for years in
which a tax change has occurred, if applicable.

(9) For those companies with a Bona Fide Retail Request
Program, a bona fide retail request report under section
3014(c)(9). These reports shall be submitted in theform determined
by the council.

(f) Other reports

(1) Notwithstanding anyother provision of this title to the
contrary, no report, statement, filing orother document or
information, except as specified in subsection (e), shall berequired of any local exchange telecommunications company unless
the council, upon notice to the affected local exchange
telecommunications company and an opportunity to be heard, has
first made specific written findingssupporting conclusions in an
entered order that:

(A) The report is necessary to ensure that thelocal exchange
telecommunications company is charging rates that are incompliance
with this chapter and its effective alternative form of regulation.

(B) Thebenefits of the report substantially outweigh the
attendant expense and administrativetime and effort required of
the local exchange telecommunications company toprepare it.

(2) Nothing inthis subsection impedes the ability of the
council to require the submission of further information to support
the accuracy of or toseek an explanation of the reports specified
in subsection (e).

(g) Rate changelimitations.-- Nothing in this chapter shall
be construed to limit the requirement of section 1301 that rates
shall be justand reasonable. The annual rate change limitations
set forth in a local exchange telecommunications company's
effective council-approved alternativeform of regulation plan or
any other council-approved annual rate changelimitation shall
remain applicable and shall be deemed just and reasonable undersection 1301.

(h) Conformance of plan.-- Upon approval of a local exchange
telecommunications company ofnetwork modernization plan amendments
pursuant to section 3014(e), the localexchange telecommunications
company's alternative form of regulation plan shall be deemed
amended consistent with this section.

(1) A local exchange telecommunications company may petition
the councilfor a determination of whether a protected or retail
noncompetitive service orother business activity in its service
territory or a particular geographicarea, exchange or group of
exchanges, or density cell within its service territory is
competitive based on the demonstrated availability of like or
substitute services or other business activities provided or
offered by alternative service providers. The council, after notice
and hearing, shall enter anorder granting or denying the petition
within sixty days of the filing date or within one-hundred fifty
days of the filing date where a protest is timely filed or thepetition shall be granted.

(2) The local exchange telecommunications company shall serve
a copy of its petition on the Office of Consumer Advocate, the
Office of Small Business Advocate and each of the parties to the
council's proceeding in whichthe company's network modernization
plan was approved.

(3) In making its determination, the councilshall consider
all relevant information submitted to it, including theavailability of like or substitute services or other business
activities, and shall limit its determination to the service
territory or the particular geographicarea, exchange or group of
exchanges or density cell in which the service orother business
activity has been proved to be competitive.

(4) The burden of proving that aprotected or retail
noncompetitive service or other business activity iscompetitive
rests on the local exchange telecommunications company.

(b) Declaration of retail nonprotected services as
competitive. Notwithstanding the provisions of subsection (a), a
localexchange telecommunications company may declare any retail
nonprotected serviceas competitive by filing its declaration with
the council and serving it on the Office of Consumer Advocate,
Office of Small Business Advocate and eachof the parties to the
council's proceeding in which the company's network modernization
plan was approved, provided that a local exchange
telecommunications company may not use this declaration process for
any service that the councilpreviously has reclassified as
noncompetitive under either subsection (c) or prior law. A
declaration of a retail nonprotected service as competitive iseffective upon filing by the local exchange telecommunications
company with the council.

(c)reclassification.

(1) A party may petition the council for adetermination of
whether a service or other business activity previously determined
ordeclared to be competitive is noncompetitive. The council, afternotice and hearing, shall enter an order deciding the petition
within sixty days ofthe filing date or ninety days of the filing
date where a protest is timely filed orthe petition is approved.

(2) The petitioner shall serve a copy of the petition on the
affected local exchange telecommunications company, if the
petitioner is not thecompany, the Office of Consumer Advocate, the
Office of Small Business Advocate andeach of the parties to the
council's proceeding in which the company'snetwork modernization
plan was approved.

(3) In making its determination, the council shall consider
all relevantinformation submitted to it, including the
availability of like or substituteservices or other business
activities, and shall limit its determination to theparticular
geographic area, exchange or density cell in which the service or
otherbusiness activity has been proved to be noncompetitive. (4) The burden of proving that a competitiveservice or other
business activity should be reclassified as noncompetitive restson
the party seeking the reclassification.

(5) If the council reclassifies a service orother business
activity as noncompetitive, the council shall determine ajust and
reasonable rate for the reclassified service or business activity
inaccordance with section 1301 relating to rates to be just and
reasonable.

(d) Additional requirements.

(1) The prices which a local exchange telecommunicationscompany charges for competitive services shall not be less than the
costs toprovide the services.

(2) The council may not require tariffs for competitive
service offerings tobe filed with the council.

(3) A local exchange telecommunications company, at its
option, may tariff itsrates, subject to rules and regulations
applicable to the provision ofcompetitive services.

(4) The council may require a local exchange
telecommunications company tomaintain price lists with the council
applicable to its competitive services.Price changes that are
filed in a company's tariff for competitive serviceswill go into
effect on a one-day notice.

(e) Pricing flexibility and bundling.

(1) Subject to the requirements of subsection (d)(1), a local
exchangetelecommunications company may price competitive services
at the company's discretion.

(2) A localexchange telecommunications company may offer and
bill to customers on one bill, bundled packages of services which
include nontariffed, competitive,noncompetitive or protected
services, including services of an affiliate, in combinationsand
at a single price selected by the company. A local exchangetelecommunications company may file an informational tariff for a
bundled package effectiveon a one-day notice.

(3) When an alternative service provider is offering local
exchangetelecommunications services within an exchange of a rural
telecommunications carrier, therural telecommunications carrier
may reduce its prices on services offeredwithin the exchange below
the rates set forth in its otherwise applicable tariff inorder to
meet such competition. A rural telecommunications carrier may notoffset revenue reductions resulting from such competitive pricing
by increasingrates charged to other customers through its price
stability mechanism orotherwise.

(f) Prohibitions.

(1) A local exchange telecommunications company shall be
prohibited from usingrevenues earned or expenses incurred in
conjunction with noncompetitiveservices to subsidize competitive
services.

(2) Paragraph (1) does notprevent the marketing and billing
of packages containing both noncompetitive andcompetitive services
to customers.

§31-15D-7. Access charges.

(a) General rule.The council may not require a local exchange
telecommunications company to reduce access rates except on a
revenue-neutral basis.

(c) Limitation. No telecommunications carrier providing
competitivelocal exchange telecommunications service may charge
access rates higher than those charged by the incumbent local
exchange telecommunications company inthe same service territory,
unless such carrier can demonstrate that the higheraccess rates
are cost justified.

(2) Aninterexchange telecommunications carrier may file and
maintain tariffs or price lists with the council for competitive
telecommunications services.

(3) Nothing in this chapter limits the authority of the
council to regulate theprivacy of interexchange service and the
ordering, installation, restoration and disconnection of
interexchange service to customers.

(c) Reclassification. The council may reclassify
telecommunications services provided by an interexchange
telecommunications carrier as noncompetitive if, after notice andhearing, it determines, upon application of the criteria set forth
in this chapter,that sufficient competition is no longer present. (d) Construction.-- Nothing in this chapter:

(1) Limits the authority of the council to resolve complaints
regarding the qualityof interexchange telecommunications carrier
service.

(2) Limits the authority of the council todetermine whether
an interexchange telecommunications carrier should be extendedthe
privilege of operating within this state or to order the filingof
such reports, documents and information as may be necessary to
monitor the market for and competitiveness of interexchange
telecommunications services.

§31-15D-9. Additional powers and duties.

(a) General rule. The council may certify more than onetelecommunications carrier to provide local exchange
telecommunications service in aspecific geographic location. The
certification shall be granted upon a showing that it is in the
publicinterest and that the applicant possesses sufficient
technical, financial andmanagerial resources.

(b) Powers and duties retained. The council shall retain the
following powers andduties relating to the regulation of all
telecommunications carriers andinterexchange telecommunications
carriers, including the power to seek informationnecessary to
facilitate the exercise of these powers and duties:

(1) To audit the accounting andreporting systems of
telecommunications carriers relating to their transactionswith
affiliates. A telecommunications carrier shall file affiliated
interest and affiliated transaction agreements unless such
agreements involveservices declared to be competitive. The filings
shall constitute notice to the council only and shall not require
approval by the council.

(2) To reviewand revise quality of service standards that
address the safety, adequacy, reliability and privacy oftelecommunications services and the ordering, installation,
suspension, termination and restoration of any telecommunications
service. Anyreview or revision shall take into consideration the
emergence of new industry participants, technological advancements,
service standards and consumerdemand.

(3) Subject tothe provisions of section 3015(e), to establish
such additional requirements as are consistent with thischapter as
the council determines to be necessary to ensure the protection ofcustomers.

(4) Tocondition the sale, merger, acquisition or other
transaction required to be approved undersection 1102(a)(3) of a
local exchange telecommunications company or anyfacilities used to
provide telecommunications services to ensure that there is noreduction in the advanced service or broadband deployment
obligations for theaffected property or facilities.

(c) Privacy of customer information.

(1) Except as otherwise provided in thissubsection, a
telecommunications carrier may not disclose to any person
informationrelating to any customer's patterns of use, equipment
and network information andany accumulated records about customers
with the exception of name, addressand telephone number.

(2) A telecommunications carrier may disclose such
information:

(A) Pursuant to a court order orwhere otherwise required by
federal or state law.

(B) To the carrier's affiliates, agents,contractors or
vendors and other telecommunications carriers or interexchange
telecommunications carriers, as permitted by federal or state law.

(C) Where theinformation consists of aggregate data which
does not identify individual customers.

(d) Unreasonable preferences. Nothing in this article limits
theauthority of the council to ensure that local exchange
telecommunicationscompanies do not make or impose unreasonable
preferences, discriminations orclassifications for protected
services and other noncompetitive services.

(e) Lifeline service.

(1) Alleligible telecommunications carriers certificated to
provide local exchange telecommunications service shall provide
lifeline service to alleligible telecommunications customers who
subscribe to such service.

(2) All eligibletelecommunications customers who subscribe to
lifeline service shall be permitted tosubscribe to any number of
other eligible telecommunications carriertelecommunications
services at the tariffed rates for such services. (3) Whenever a prospective customer seeks tosubscribe to
local exchange telecommunications service from an eligibletelecommunications carrier, the carrier shall explicitly advise the
customer of theavailability of lifeline service and shall make
reasonable efforts where appropriate to determine whether the
customer qualifies for such service and, if so,whether the
customer wishes to subscribe to the service. (4) Eligible telecommunications carriers shallinform existing
customers of the availability of lifeline service twiceannually by
bill insert or message. The notice shall be conspicuous and shallprovide appropriate eligibility, benefits and contact information
for customers who wish to learn of the lifeline service
subscription requirements.

(5) When a person enrolls in a low-income program administered
by the Department of Health and Human Resources that qualifiesthe
person for lifeline service, the Department of Health and Human
Resources shall automatically notify that person at the time of
enrollment of his or hereligibility for lifeline service. This
notification also shall provide information about lifeline service
including a telephone number of andlifeline subscription form for
the person's current eligible telecommunicationscarrier or, if the
person does not have telephone service, telephone numbers ofeligible telecommunications carriers serving the person's area,
that the personcan call to obtain lifeline service. Eligible
telecommunications carriers shallprovide the Department of Health
and Human Resources with lifeline service descriptions and
subscription forms, contact telephone numbers, and a listing of thegeographic area or areas they serve, for use by the Department of
Health and Human Resources inproviding the notifications required
by this paragraph.

(6) No eligibletelecommunications carrier shall be required
to provide after the effective date of this sectionany new
lifeline service discount that is not fully subsidized by the
federaluniversal service fund.

(f) Method for fixing rates. The council may not fix or
prescribe the rates,tolls, charges, rate structures, rate base,
rate of return or earnings ofcompetitive services or otherwise
regulate competitive services except as set forthin this chapter. (g) Protectionof employees.

(1) No telecommunications carrier may discharge, threaten,
discriminate or retaliate against an employee because the employee
made a good faith report to the council, the Office of Consumer
Advocate or the Office of Attorney General regarding wrongdoing,
waste or a potential violation of the council's orders or
regulations or of this title.

(2) A person who alleges aviolation of this section must
bring a civil action in a court of competent jurisdictionfor
appropriate injunctive relief or damages within one hundred eighty
days after theoccurrence of the alleged violation.

NOTE: The purpose of this article is to provide alternative
mechanisms to supplement current strategies designed to encourage
the speedy deployment of broadband throughout the state.

This article is new; therefore, strike-throughs and
underscoring have been omitted.